Japan proposes cryptocurrency tax reform

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The Financial Services Agency of Japan (FSA) has just announced a proposed tax reform for 2026, which prominently features a plan to impose a separate tax on cryptocurrencies and expand the NISA program. Currently, profits from crypto trading are taxed under the unified income system, with a maximum progressive tax rate of 55%. The FSA proposes to apply a "declared capital gains tax" at a fixed rate of around 20%, similar to stock investments, while also allowing a mechanism for loss carryforward for 3 years – a condition that is not currently applicable to digital assets.

In addition, the FSA wants to expand NISA – the tax-exempt program that encourages saving and investment – to all generations, including children and the elderly, although it currently does not apply to crypto. The proposal will be submitted to the Ministry of Finance at the end of August and is expected to be reviewed during the 2026 National Assembly session, promising to create a significant boost for the development of Japan's digital asset industry.

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